Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 24

Anita Spencer is the founder and manager of Spencer Playhouse.he business needs to obtain a bank loan to finance the production of its next play.s part of the loan application, Anita Spencer was asked to prepare a balance sheet for the business.he prepared the following balance sheet, which is arranged correctly but which contains several errors with respect to such concepts as the business entity and the valuation of assets, liabilities, and owner's equity.

In discussions with Anita Spencer and by reviewing the accounting records of Spencer Playhouse, you determine the following facts:
1.he amount of cash, $21,900, includes $15,000 in the company's bank account, $1,900 on hand in the company's safe, and $5,000 in Anita Spencer's personal savings account.
2.he accounts receivable, listed as $132,200, include $7,200 owed to the business by Artistic Tours.he remaining $125,000 is Anita Spencer's estimate of future ticket sales from September 30 through the end of the year (December 31).
3.nita Spencer explains to you that the props and costumes were purchased several days ago for $18,000.he business paid $3,000 of this amount in cash and issued a note payable to Actors' Supply Co.or the remainder of the purchase price ($15,000).s this note is not due until January of next year, it was not included among the company's liabilities.
4.pencer Playhouse rents the theater building from Kievits International at a rate of $3,000 a month.he $27,000 shown in the balance sheet represents the rent paid through September 30 of the current year.ievits International acquired the building seven years ago at a cost of $135,000.
5.he lighting equipment was purchased on September 26 at a cost of $9,400, but the stage manager says that it isn't worth a dime.
6.he automobile is Anita Spencer's classic 1978 Jaguar, which she purchased two years ago for $9,000.he recently saw a similar car advertised for sale at $15,000.he does not use the car in the business, but it has a personalized license plate that reads "PLAHOUS."
7.he accounts payable include business debts of $3,900 and the $2,100 balance of Anita Spencer's personal Visa card.
8.alaries payable include $25,000 offered to Mario Dane to play the lead role in a new play opening next December and $4,200 still owed to stagehands for work done through September 30.
9.hen Anita Spencer founded Spencer Playhouse several years ago, she invested $20,000 in the business.owever, Live Theatre, Inc., recently offered to buy her business for $173,300.herefore, she listed this amount as her equity in the above balance sheet.
Instructions
a.repare a corrected balance sheet for Spencer Playhouse at September 30, 2015.
b.or each of the nine numbered items above, explain your reasoning in deciding whether or not to include the items in the balance sheet and in determining the proper dollar valuation.